Business English

Business English Lecture 1 Basic Economic Concepts Wants (dopyt) - Simply the desires of citizens. Wants are different from needs as we will see below. Wants are a means of expressing a perceived need. Wants are broader than needs. Needs (potreby): These are basic requirements for survival like food and water and shelter. In recent years we have seen a perceived shift of certain items from wants to needs. Telephone service, to many, is a need. I would argue, however, that they are wrong. Scarcity (nedostatok) - the fundamental economic problem facing ALL societies. Essentially it is how to satisfy unlimited wants with limited resources. This is the issue that plagues all government and peoples. How do we conquer the issue of scarcity? Many people have thought they had the answer (see Marx, Smith, Keynes, etc.) but the issue of scarcity still exists. Factors of Production/Resources - these are those elements that a nation has at its disposal to deal with the issue of scarcity. How efficiently these are used determines the measure of success a nation has. They are Land - natural resources, etc. Capital - investment monies. Labor - the work force; size, education, quality, work ethic. Entrepreneurs - inventive and risk taking spirit. This is a rather new addition to a traditional list. The "Three Basic Economic Questions" - these are the questions all nations must ask when dealing with scarcity and efficiently allocating their resources. What to produce? How to produce? For whom to produce? Economics - Economics is the study the production and distribution of goods and services, it is the study of human efforts to satisfy unlimited wants with limited resources. Opportunity Cost - the cost of an economic decision. The classic example is "guns or butter." What should a nation produce; butter, a need, or guns, a want? What is the cost of either decision? If we choose the guns the cost is the butter. If we choose butter, the cost is the guns. Nations bust always deal with the questions faced by opportunity cost. It is a matter of choices. Resources are limited thus we cannot meet every need or want. Free Products: Air, sunshine are and other items so plentiful no one could own them. Good: tangible commodity. These are bought, sold, traded and produced. Consumer Goods: Goods that are intended for final use by the consumer.

Capital Goods: Items used in the creation of other goods. Factory machinery, trucks, etc. Durable Goods: Any good that lasts more than three years when used on a regular basis. Non Durable Goods: Any item that lasts less than 3 years when used on a regular basis. Services: Work that is performed for someone. Service cannot be touched or felt. Consumers: people who use these goods and services. Value: An assignment of worth. The assignment is usually based upon the utility (usefulness) or scarcity of the item (supply and demand). Utility: capacity to be useful. Paradox of value: assignment of the highest value to those things we need the least, like water and the highest things we often don't need at all like diamonds. Why do we do this? Good question. I do not have an answer. Wealth: the sum collection of those economic products that are tangible, scarce and useful. Productivity - the ability to produce vast amounts of goods (economic products) in an efficient manner. The American capilist economy is productive because: We use our resource efficiently. We specialize to increase efficiency and productivity. We invest in Human Capital (our labor pool) Money – a nominal expression of wealth, they temselves have no real value, they represent value. Tato bankovka je chranena aktivami statni banky cssr Gross domestic product - a measure of the goods and services produced by labor and property that is located in a given state/country. GDP is the most common measure or international standard of national economic performance that is used by governments and economists worldwide. Supply and Demand - The demand for a product is defined as the quantity of the product which consumers are willing to purchase. Factors that affect the demand relationship of a product include: • • • •

The price of the product. Generally, the higher the product is priced, the lower the quantity demanded by consumers. Consumer income. The higher the consumer’s income, the more goods the consumer will demand. The price and availability of related goods. If attractive substitute products are available at a lower price, less of a product will be in demand. Consumer expectations. If consumers expect product prices to rise, the more of the product they will demand now.

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Advertising. Effective advertising can promote and expand demand for the product of a company, or advertising can expand the marketplace for an entire industry. Demographics. As the population demographics change over the years so do consumer tastes and the products that they consume.

The demand curve for a product portrays the important relationship that exists between the quantity of a product that would be purchased and the prices that are charged for the product. Movement along the demand curve reflects a change in the quantity demanded. For example when prices decline, the quantity of the product demanded by consumers will increase. This is called the law of demand, and explains why demand curves normally slope downward and to the right. When the demand curve shifts, this is known as a change in demand. Change in demand is caused by some factor other than price. The price elasticity of demand refers to the responsiveness of the quantity of goods that are demanded in relation to changes in the price of the product. Most products have elastic demand. Demand is said to be elastic when a given change in price produces a greater percent change in the quantity of the product that is demanded. The elasticity of demand is determined by the availability of substitute products and the percentage of the consumers total budget that is spent on the product. Necessities, in general, tend to be more inelastic than luxury goods. Gasoline represents a good example of a product with elastic demand. On the other hand, some products will be in demand no matter what the price; for example, insulin, which is used by diabetics. If the price of insulin were to double, in all probability the 高͵constant. This situation is known as quantity of insulin demanded would remain inelastic demand. The supply of a product is defined as the quantity of the product which producers or manufacturers are willing to produce and sell. A change in supply is different from the change in the quantity supplied. A change in the quantity supplied occurs when the price of the product itself changes, and this change is depicted as a movement along the existing supply curve. A change in supply occurs because of factors other than price. A change in supply is reflected by a movement or shift, of the entire supply curve, up or down. The factors that affect supply changes, and which can shift the supply curve include: • • • •

A change in the price of the inputs of production such as raw materials, labor, or capital. Changes in production technology such as the use of additional or more efficient machinery or production methods. Changes in fiscal or monetary policy such as the imposition of taxes or other incentives or disincentives introduced by governments. Natural disasters such as fires, floods, ice storms, or tornadoes which reduce the availability of goods on hand and may interrupt production schedules.

Basic Legal Entities Sole Proprietorship (self employed person) 1. Owner has complete control over all business affairs. 2. Simple to administer and operate. Trade license, tax statement. 3. Long established business mechanism 1. No distinction between personal and business entities and therefore, no protection for one's own personal assets. There is no tax distinction between personal and business income, often leading to an inefficient use of potential tax savings. 2. A Sole Proprietor is directly liable for the actions of his employees. Partnership By definition a Partnership is the coming together of two, or more individuals for their common good. Like the 'Sole Proprietorship', the Partnership is almost totally exposed to third party actions. Legally, a Partnership can often be formed with no written agreement, however, one would be ill advised not to set-out the rights and obligations of the partners. One point that should always be borne in mind is that in the case of economic difficulties each partner will be liable not only for his shareholding but for all partnership debts which means that any person with assets should be very careful before going into business with a less well off counterpart as whilst the gains will be equal the potential losses will not!

Limited Liability Companies (LLC) ͵ The primary advantage of these entities is高that they are all based on the simple principle that the liability of the shareholders/subscribers and officers is strictly limited to their direct investment in the company. 1. A Private Limited Company (LTD) Most common type. The principal purpose is to earn profits for the shareholders who may or may not be the same as the Director(s) or Secretary. These companies can be formed and registered with as little as one Pound (UK£1.00). In most cases, they adhere to a standardized format and are remarkably inexpensive. 2. A Public Limited Company (PLC) Theoretically this is a company, which has the same profit motive as a private undertaking save that its shares can be offered for sale to the general public. In reality, the vast majority of PLC's simply operate as "private" companies employing the PLC name simply as a prestige marketing "tool". Nevertheless, even a PLC, which has not sought a public stock exchange listing, must adhere to the requirements of English & Welsh legislation. Corporations and LLCs (Corp, Inc) What sets the corporation apart from all other types of businesses is that a corporation is an independent legal and tax entity, separate from the people who own, control and manage it. Because of this separate status, the owners of a corporation don't use their personal tax returns to pay tax on corporate profits -- the corporation itself pays these taxes. Owners pay personal income tax only on money they draw from the corporation in the form of salaries, bonuses and the like.

Top management /ownership President Chairman Managing Director General Manager CEO Lower management: Commercial Director Finance Director Director of Operations Director of Customer Services Non-Executive Director Non-Executive Director Board of Directors Elected by the shareholders, the board of directors is made up of two types of representatives. The first type involves individuals chosen from within the company (predstavenstvo). This can be a CEO, CFO, manager, or any other person who works for the company on a daily basis. The other type of representative is chosen externally (dozorná rada) and is considered to be independent from the company. The role of the board is to monitor the managers of a corporation, acting as an advocate for stockholders. In essence, the board of directors tries to make sure that shareholders' interests are well served.


Business English Lecture 2 Business Plan Basics, Business in Practice What should a good business plan contain? •

Executive summary. Begin your plan with an executive summary, which you should write last. The summary condenses your main points into two or three pages so investors can quickly decide if the opportunity suits them enough to keep reading.

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Product. What are you selling? Describe your product, giving enough information to imagine the product. Eliminate the technical details—if you can't get the idea across quickly, you haven't thought it through enough.

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Marketing. Who buys, why and how? Who are your customers? What need are you filling? Give numbers and sources to give a feel for the opportunity size. For example, "Tractors Quarterly, May 2000, says 20,000 tractor manufacturers need 15 hours to change production lines. Our patent-protected TractorGizmo™ reduces that to 12 seconds, saving an estimated $55 billion yearly."

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Business model. Show where the money comes from. Gillette loses money on razors, but makes money—lots of money—selling blades. Discuss who pays you, how much they pay and how often. See Эᕆ http://www.venturecoach.com/resources/bizmodel.htm for examples of different business models.

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The team. Introduce your team and advisory board. Good ideas are common; talented managers aren't. Show you have the right team for the idea by highlighting the relevant background of your team members. If you make ball bearings, emphasize your experience in manufacturing, not your time as a college newspaper editor. (Yes, this really happened.)

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Competition. What's your competition and why will you win? Competition may not be a company. Personal checkbook program Quicken considered pencil and paper, not other computer programs, the biggest competition.

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Financing. How much money do you have? Where did it come from? How much do you want? How will you use it? What return are you promising investors?

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Include two to five years of financial projections (called pro formas). Even if you can't predict the future exactly, creating the projections forces you to identify and double-check your assumptions.

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Operations. Eventually you'll need to get things done. Describe how you'll deliver your product, the problems you expect and how you'll master them. If your business allows 100,000 people a year to order custom-made suits by telephone, here's where you say how you'll actually make and deliver 100,000 suits.

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Scale. How will you grow? A diner isn't run the same way as a 250-table restaurant. Explain your growth plans and how your idea scales.

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Development. How are you doing so far? If you're already under way, talk about your progress. In any event, lay out the next few months' milestones so you and your investors can track your progress.

Business in practice Accounting (uctovnictvo) vs. Bookkeeping (uctovanie) On to the terminology: We have already said the words "accounting" and "bookkeeping." Accounting is the big picture, the system that keeps track of data (including people), records your transaction history, gives you reports -- those allimportant pictures of your company. Accounting also encompasses payroll, an area of particular concern since huge fines can accompany small mistakes. Of equal weight is the tax status of your company. Accounting is the system that will provide the reports and information you need. Bookkeeping is the tedious part -- the systematic recording of amounts, dates, and sources of every revenue and expense you generate. Think of accounting as a giant sifter and of bookkeeping as the process of pouring stuff into it. Things get stirred around and you get the information you need to run your business. 高͵

Glossary Accounting This is the system that tracks the transactions that make up your business income and expenses and then uses this data to create reports that show the financial and task status of your business. Accounts Payable This is the money that your company owes to its vendors. Accounts Receivable This is the money that your customers owe to your company. Accrual Basis Accounting This is the accounting system in which reports are drawn from accounts payable, accounts receivable, cash sales, and cash payments. Most accountants recommend accrual basis accounting if you bill your customers or incur debt. (See Cash Basis Accounting) Assets The are the things that add value to your company: cash in the bank, accounts receivable, property, equipment, stocks or bonds, etc. Balance Sheet

Think of a Polaroid picture. This is a snapshot of where your company is on a particular date. It lists assets, liabilities, and produces your equity -- the net worth of your company. (Download a Sample Balance Sheet, and visit our Tools Library for more samples.) Bookkeeping This is the process of entering data into an accounting system, including the amount, date, and source of each revenue or expense. No accounting system will work without reliable bookkeeping. Budget This is a process for managing cash flow in your company. Cash Basis Accounting This is the accounting system in which cash transactions are recorded and reports drawn from actual payments made into and out of your company. (See Accrual Basis Accounting) Cash Flow This is a summary of your company's sources and uses of cash. A cash flow report will show you changes in your cash position over a period of time. (Download a Sample Cash Flow Statement, and visit our Tools Library for more samples.) Cash Sale (Receipt) This is a sale of a product or service that is paid for when it is delivered. The paperwork that accompanies a cash sale is called a receipt and documents the delivery and payment. Equity This is the net worth of your company when all assets and liabilities have been accounted for. Invoice This is the written record of a transaction, often given to a customer or client when a service or product is delivered, but not paid for. Sometimes invoices are called bills, or even statements, although statements are technically something else (see below). Liabilities These are the things that your company owes to others: accounts payable, credit card debt, mortgages, etc. Profit and Loss Statement This is one of the reports that your accounting system will generate to give you a picture of how your company is faring. A P&L statement will look at a period of time such as a month, a quarter, or a year. You can compare with other periods of time to make decisions. (Download a Sample Profit and Loss Statement, and visit our Tools Library for more samples.) Statement This is a written summary of unpaid invoices. Statements may contain several invoices and are usually sent as a reminder of payment due.

REVENUE (PRIJEM) In business, revenue is the overall amount of money that a company actually receives from its activities, mostly from sales to customers. To investors, revenue is less important than profit, or income, which is the amount of money the business has earned after deducting all the business's expenses. Revenue growth, as well as income growth, is considered essential for a company's publicly traded stock to be attractive to investors. INCOME, PROFIT (ZISK) Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. For example, most individuals' income is the money they receive from their regular paychecks. In business and accounting, income (also known as profit or earnings) is, more specifically, the amount of money that a company earns after paying for all its costs. To calculate a company's income, it starts with its amount of revenue, deducts all costs, including such things as employees' salaries and depreciation, and the number that results is its income, which may be a negative number. Revenue – costs – tax = income At least part of this money is typically reinvested in the business, and some of the money might be used to pay the owners (the shareholders) a dividend. Profit is what is gained, after costs are accounted for. In accounting, this is usually measured in monetary terms. In economics, profit is most often measured differently, since costs are opportunity costs.  Profit is income received by buying low and selling high. Includes the case in which an entrepreneur buys factors of production and uses them to make something that can be sold for more than the costs of obtaining future inputs. To Karl Marx, in between buying low and selling there must be a production process in which workers produced surplus-value (unpaid labor), the basis for profits. TAX (DAN) • Income tax – direct withholding (priame strhavanie zamestnavatelom) • Capital gains tax • Poll tax - dan na hlavu obcana • Excise tax - ad valorem - value added tax, imposed at the time of a purchase or sale transaction, sales tax – to discourage retailing, to modify consumer patterns (tobacco, alcohol) • Property tax BALANCE SHEET (SUVAHA) In formal bookkeeping and accounting, a balance sheet (suvaha) is a statement of the financial value (or "worth") of a business or other organisation (or person) at a particular date, usually at the end of its "fiscal year," as distinct from a profit and loss statement (or "P&L"), which records income and expenditures over some period. Therefore a balance sheet is often described as a "snapshot" of the company's financial condition at that time. The balance sheet has two parts: assets (aktíva, what others owe to us or what we own) on the left-hand ("debit") side or at the top and liabilities (pasiva, what we owe to other parties) on the right-hand ("credit") side or at the bottom. The assets of

the company -- money ("in hand" or owed to it, peniaze, ktore dlzime spolocnosti), investments (including securities and real estate), and other property -- are equal to the claims for payments of the persons or organisations owed -- the creditors, lenders, and shareholders. This standard format for balance sheets is derived from the principle of double-entry bookkeeping. According to the basic accounting equation: assets = liabilities + equity (capital) therefore, assets - liabilities = equity. Equity, which is the shareholders' interest (= "net worth"), may not reflect the company's true value, since assets are normally shown (= "carried") on the balance sheet at what the company paid for them, without any adjustment for increases or decreases in their value since then. INCOME STATEMENT Elements of the income statement used in accounting are net income results from revenue, expense, gain, and loss transactions. Revenues - Inflows or other enhancements of assets of an entity or settlements of its liabilities during a period from delivering or producing goods, rendering services, or  other activities that constitute the entity's ongoing major or central operations. Expenses - Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitue the entity's ongoing major or central operations. Gains - Increases in equity (net assets) from peripheral or incidental transactions of an entity except those that result from revenues or investments by owners. Losses - Decreases in equity (net assets) from peripheral or incedental transactions of an entity except those that result from expenses or distributions to owners. CASH FLOW STATEMENT (VYKAZ TOKU HOTOVOSTI) A cash flow statement is a financial report that shows incoming and outgoing money during a particular period (often monthly or quarterly). It does not include noncash items such as depreciation. This makes it useful for determining the short-term viability of a company, particularly its ability to pay bills. People and groups interested in cash flow statements include: Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses Potential lenders/creditors, who want a clear picture of a company's ability to repay Potential investors who need to judge whether the company is financially sound Potential employees or contractors who need to know whether the company will be able to afford compensation

Cash flow statements are particularly important for start-up companies with limited liquid assets. These companies are vulnerable to devastating cash shortages, even when Accounts Receivable balances point to long-term financial health.



Business English Lecture 3 Banking The funny thing about how a bank works is that it functions because of our trust. We give a bank our money to keep it safe for us, and then the bank turns around and gives it to someone else in order to make money for itself. Banks can legally extend considerably more credit than they have cash. Still, most of us have total trust in the bank's ability to protect our money and give it to us when we ask for it. Why do we feel better about having our money in a bank than we do having it under a mattress? Is it just the fact that they pay interest on some of our accounts? Is it because we know that if we have the cash in our pockets we'll spend it? Or, is it simply the convenience of being able to write checks and use debit cards rather than carrying cash? Any and all of these may be the answer, particularly with the conveniences of electronic banking today. Now, we don't even have to manually write that check -- we can just swipe a debit card or click the "pay" button on the bank's Web site.

What is a bank? According to Britannica.com, a bank is: an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively. Banks are critical to our economy. The primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college... When you deposit your money in the bank, your money goes into a big pool of  account is credited with the amount of money along with everyone else's, and your your deposit. When you write checks or make withdrawals, that amount is deducted from your account balance. Interest you earn on your balance is also added to your account. Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.

In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!

Why does banking work? Banking is all about trust. We trust that the bank will have our money for us when we go to get it. We trust that it will honor the checks we write to pay our bills. The thing that's hard to grasp is the fact that while people are putting money into the bank every day, the bank is lending that same money and more to other people every day. Banks consistently extend more  credit than they have cash. That's a little scary; but if you go to the bank and demand your money, you'll get it. However, if everyone goes to the bank at the same time and demands their money (a run on the bank), there might be problem. Even though the Federal Reserve Act requires that banks keep a certain percentage of their money in reserve, if everyone came to withdraw their money at the same time, there wouldn't be enough. In the event of a bank failure, your money is protected as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC). The key to the success of banking, however, still lies in the confidence that consumers have in the bank's ability to grow and protect their money. Because banks rely so heavily on consumer trust, and trust depends on the perception of integrity, the banking industry is highly regulated by the government.

Types of Banks There are several types of banking institutions, and initially they were quite distinct. Commercial banks were originally set up to provide services for businesses. Now, most commercial banks offer accounts to everyone. Savings banks, savings and loans, cooperative banks and credit unions are actually classified as thrift institutions (šporiteľne). Each originally concentrated on meeting specific needs of people who were not covered by commercial banks. Savings banks were originally founded in order to provide a place for lower-income workers to save their money. Savings and loan associations and cooperative banks were established during the 1800s to make it possible for factory workers and other lower-income workers to buy homes.

Credit unions were usually started by people who shared a common bond, like working at the same company (usually a factory) or living in the same community. The credit union's main function was to provide emergency loans for people who couldn't get loans from traditional lenders. These loans might be for things like medical costs or home repairs. Now, even though there is still a differentiation between banks and thrifts, they offer many of the same services. Commercial banks can offer car loans, thrift institutions can make commercial loans, and credit unions offer mortgages!

How do banks make money? Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products. They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts.



The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend. As we mentioned in the previous section, the amount available to lend also depends upon the reserve requirement the Federal Reserve Board has set. At the same time, it may also be affected by the funds rate, which is the interest rate that banks charge each other for short-term loans to meet their reserve requirements. Check out How the Fed Works for more on how the Fed influences the economy. Loaning money is also inherently risky. A bank never really knows if it'll get that money back. Therefore, the riskier the loan the higher the interest rate the bank charges. While paying interest may not seem to be a great financial move in some respects, it really is a small price to pay for using someone else's money. Imagine having to save all of the money you needed in order to buy a house. We wouldn't be able to buy houses until we retired! Banks also charge fees for services like checking, ATM access and overdraft protection. Loans have their own set of fees that go along with them. Another source of income for banks is investments and securities.

How safe is your money in a bank? Deposit insurance came about because of rumors of banking trouble that lead to panics and everyone running to the bank to withdraw all of their money. It didn't take much to make people uneasy about the security of their money in the bank. If they

heard of the slightest hint of trouble, they ran to the bank to withdraw. This lead to the failure of many banks and huge losses of savings for many people. This roller coaster of personal finance lasted for many years and throughout the Great Depression of the 1930s. Finally, in 1934, Congress established the Federal Deposit Insurance Corporation (FDIC), which initially provided deposit insurance coverage of $2,500 per depositor. This greatly improved the security of banks and reduced the number of bank failures by almost 4,000 from 1933 to 1934. Public confidence in the banking system has improved tremendously since the FDIC was established. The trust that depositors need in order to make the system work is maintained, and the economy keeps humming. Banks also carry private banking insurance -- specially designed private coverage to protect deposits in the case of burglaries, robberies, vandalism, etc.

Checking Accounts Banks offer lots of financial products for their depositors. The checking account is one of the most common ones. It's convenient because it lets you buy things without having to worry about carrying the cash -- or using a credit card and paying its interest. While most checking accounts do not pay interest, some do -- these are referred to as negotiable order of withdrawal (NOW) accounts. Some say that checks have been around since about 352 B.C. in the Roman Empire. It appears that checks really started becoming popular in Holland in the 1500 to 1600s. Dutch "cashiers" provided an alternative to keeping large amounts of cash at home and agreed to hold depositors' money for safekeeping. For a fee, they would pay the depositors' debts  from the account based on a note that the depositor would write -- sounds a lot like a check! Today's banks do the same thing. It became a little more complicated when lots of banks became involved and money needed to be shifted from one bank to the next. To make things easier, banks now have a system of check "clearinghouses." Banks either send checks through the Federal Reserve or use a private clearinghouse to transfer the funds and clear the check. Here is a diagram of how that works.

Loans, Checks and Savings Aside from checking accounts, they offer loans, certificates of deposits and money market accounts, not to mention traditional savings accounts. Some also allow you to set up individual retirement accounts(IRAs) and other retirement or education savings accounts. There are, of course, other types of accounts being offered at banks across the country, but these are the most common ones. Savings accounts (sporiteľný ucet)- The most common type of account, and probably the first account you ever had, is a savings account. These accounts usually require either a low minimum balance or have no minimum balance requirement, and allow you to keep your money in a safe place while it earns a small amount of interest each month. In standard practice, there are no restrictions on when you can withdraw your money. Money market accounts - A money market account (MMA) is an interest-earning savings account with limited transaction privileges. You are usually limited to six transfers or withdrawals per month, with no more than three transactions as checks written against the account. The interest rate paid on a money market account is usually higher than that of a regular passbook savings rate. Money market accounts also have a minimum balance requirement. Certificates of deposit (terminovany vklad)- These are accounts that allow you to put in a specific amount of money for a specific period of time. In exchange for a higher interest rate, you have to agree not to withdraw the money for the duration of the fixed time period. The interest rate changes based on the length of time you decide to leave the money in the account. You can't write checks on certificates of deposit. This arrangement not only gives the bank money they can use for other purposes, but it also lets them know exactly how long they can use that money. Individual retirement accounts and education savings accounts - These types of accounts require that you keep your money in the bank until you reach a certain age or your child enters college. There can be penalties with these types of accounts,

however, if you use the money for something other than education, or if you withdraw the money prior to retirement age.



Business English Lecture 4 International trade Import/Export Happens on two levels State level – exim bank, state orders, state guarantees etc. Private level – business to business trade

Contract – typically one year stating general things, sanctions, disputes, responsibility definition, exchange rate definition, transfer of ownership (sometimes the company is still the owner of the thing, not the importer), court of jurisdiction, statement on how to make orders prices net free of shipping

Price of an imported product – Raw materials Manufacturer’s margin Transport Customs fees Warehousing/storage  Local transport Importer’s margin Retailers margin Tax Final price Payment method – LOC (akreditiv), advance payment, invoice Certification costs – typically split between the two partners Brochures & promotion – responsibility of the foreign partner, visits to your country, fairs and exhibitions etc. Transport means – expensive, if you’re smart enough, you can find a way around it. Insurance of transport Warehousing – customs warehouse, no warehouse with longer shipment times.

Business English Lecture 5 Business Letters The business letter is the basic means of communication between two companies. It is estimated that close to 100 million Business Letters are written each workday. It is a document typically sent externally to those outside a company but is also sent internally to those within a company. Most business letters have a formal tone. You should write a business letter whenever you need a permanent record that you sent the information enclosed. Because you generally send business letters to other professionals, always include a formal salutation and closing. Purpose of a Business Letter You will write business letters to inform readers of specific information. However, you might also write a business letter to persuade others to take action or to propose your ideas. business letters even function as advertisements at times. Consider the letters long-distance phone companies send to those not signed up for their services or the cover letter to your resume. Both of these serve to promote or advertise. Audience Analysis Writing a business letter is like any other type of technical communication. First you have to analyze your audience and determine your purpose. The typical audience is other professionals. However, you might also write business letters to your coworkers. These audiences generally require  you provide a detailed background about your purpose. Because a business letter is a communication from one person to another, a letter must convey a courteous, positive tone. Look at the situation from your reader's point of view and adjust the content and tone to meet the audience's needs. General Format When you write a business letter, you will follow a general format. However, your instructor or your company may have specific requirements that you must use. For instance, a company might have a particular way of presenting a salutation or may even use a specific type of letterhead.

Letterhead or Return Address Readers should always be able to quickly locate your contact information. This information is located at the top of the business letter in the return address or by using the company's letterhead. This includes: The letterhead and the date the letter will be sent (usually printed two lines below the letterhead) make up the heading. When printing on blank paper, use your address (without your name) and date as the heading. Print only the first page of any letter on letterhead stationary, with subsequent pages on blank paper, with the heading looking like this: Do not number the first page. Inside Address

The inside address is your reader's full address. This includes the reader's: name position organization (as the company calls itself) complete mailing address If your reader has a courtesy title, such as Professor, then use it. Otherwise use Mr. or Ms., unless you know the reader prefers Miss or Mrs. These should also appear identically on the envelope. For example: Attention Line When you cannot address a business letter to a particular person, use an attention line: Attention: Human Resource Manager Use the attention line if you want an organization to respond even if the person you write to is unavailable. In this instance, put the name of the organization or division on the first line of the inside address, and the attention line immediately afterwards: Subject Line Use a brief phrase or keywords to describe the content of the business letter: Subject: Admission Requirements Salutation A business letter should always include a salutation. This is to whom the letter is addressed. Salutations add a personal touch to your letter. If unsure to whom you  should address a letter, always call an organization to find a contact. You should also use a colon rather than a comma because a comma is less professional. Dear Dr. Reading: Dear Sir or Madam: When addressing a group of people, use one of the following salutations: Ladies and Gentlemen: Gentlemen: (if all the readers are male) Ladies: (if all the readers are female)

Body The body of a business letter is typically single-spaced and has three paragraphs: introductory paragraph one or more body paragraphs concluding paragraph Like essays written for college courses, a business letter introduces one main idea and then supports this idea. At the end of the letter, always include a way for your readers to contact you. Finally, consider how your letter looks. If you have nothing but paragraph after paragraph of text, you might use lists to draw attention to specific information. Lists are effective ways to present information because they break down large amounts of

text and are visually pleasing. Lists are especially useful when you have to convey steps, phases, years, procedures, or decisions, and can be bulleted or numbered. When creating a list, consider writing phrases, fragments or even questions and answers. By avoiding full sentences in a list, your information is concise and more likely to engage your readers. Complimentary Close and Signature Business letters should end with a closing, such as: Sincerely, Cordially, Best regards, Yours very truly, You should also remember to sign and type your name under the closing. End Notations If someone else types your letters, the reference line identifies this person, usually by initials. It appears a few spaces below the signature line, along the left margin. The writer's initials come first, and they are capitalized. For example, if Kathy Reese wrote a letter that McKenzie Allen typed, it would appear like this:KR/ma. If the envelope contains any documents other than the letter itself, identify the number of enclosures: Enclosure or  Enclosure (1), which means two documents Copy Line The copy line is used to let the reader know that other people are receiving a copy of the document. Use the following symbols: c: for copy pc: for photocopy bc: blind copy

Writing business e-mails - Write better business emails A business woman describing her experience at Metropolitan Life Insurance during the 1990's. Typically, there were differences in style from paper to email. Business emails were a little less formal than a paper letter or even an attached Word document sent via email, fewer font changes and that sort of thing. Most of the differences were practical. When we sent out paper to a large group, there was usually a distribution list and you could see who else got the same thing. (A different name was highlighted on each copy of the distribution list and that's how the internal mail service got it to the right person.) When email is going to a large group, it's like using labels in the paper world - you usually don't see the names of anyone else getting the email, other than what was in the 'To: ' line, like To: All Associates'. Also, business email carries it's own date, so putting in a date is not as necessary unless the email has an attachment, the attachment should have all the same info as a paper letter because they can be printed separately. Emails also say who they are from, so you might not need to 'sign' the email.

Business email writing tips DO -write an informative subject line -put the key point of your message up front  -be brief -make it easy for the reader to reply yes or no or give a short answer (instead of "let me know what you think" write "Is monday or wednesday at 2PM best for you?") -make it easy to read, combine Upper & lowercase, use white space and legible font -personalize by using conversational tone(contractions, pronouns) -use symbols occasionally to emphasize(like 'that *is* a good idea')((I'm not fond of this one)) -end well with an appropriate next step -proofread -wait a moment before pressing 'send' -make yourself look good online because your email can be forwarded to anyone or everyone else in the company or anywhere DON'T from Business Writing: what works, what won't -don't use email if the message needs to be private or secure ((maybe the company has a policy on this)) -don't send an email you wouldn't want anyone else to read, it's too easy to forward -don't leave subject line blank -don't use all capital letters -don't forward a message without a brief comment why you're forwarding it -don't overrun emails with smiley faces or other emoticons. -don't let emotions or offensive language detract from your message -don't send without checking for mistakes These same points are made in How To Write It by Sandra E. Lamb, plus she says

Resumes You have two key objectives when writing a business resume as part of your job search. Firstly, you need to persuade the recruiter that you are worthy of interview. Secondly, you need to bring your resume to life to make the recruiter aware that you are not just another “standard” applicant. Writing a Business Resume: Step One - Focus Decide what type of job you will be applying for and then write it at the top of a piece of paper. This can become your objective statement, should you decide to use one, or be used in the first line of the profile section when writing a business resume to give your reader a general idea of your area of expertise. Writing a Business Resume: Step Two - Education Under the objective on the first piece of paper, list any education or training that might relate. If you are a recent college graduate and have little relevant experience, then your education section will be placed at the top when writing a business resume. As you gain more experience, your education almost always gravitates to the bottom. Writing a Business Resume: Step Three - Job Descriptions Get your hands on a written description of the job you wish to obtain and for any jobs you have held in the past. If you are presently employed, your human resource department is the first place to look. If not, then go to your local library and ask for a copy of The Dictionary of Occupational Titles or the Occupational Outlook Handbook. 

Writing a Business Resume: Step Four - Keywords In today's world of e-mailed and scannable resumes, make sure you know the buzzwords of your industry and incorporate them into the sentences you are about to write. Keywords are the nouns or short phrases that describe your experience and education that might be used to find your resume in a keyword search of a resume database. They are the essential knowledge, abilities, and skills required to do your job. They are concrete descriptions like: C++, UNIX, fiber optic cable, network, project management, etc. Writing a Business Resume: Step Five - Your Jobs Starting with your present position, list the title of every job you have held on a separate sheet of paper, along with the name of the company, the city and state, and the years you worked there. You don't need to list addresses and zip codes when writing a business resume, although you will need to know that information when it comes time to fill out an application. Writing a Business Resume: Step Six - Duties Under each job, make a list of your duties, incorporating phrases from the job descriptions wherever they apply. At this stage of writing a business resume you don't have to worry about making great sentences yet or narrowing down your list. Writing a Business Resume: Step Seven - Accomplishments When you are finished, go back to each job and think about what you might have done above and beyond the call of duty. What did you contribute to each of your jobs?

Did you exceed sales quotas by 150 percent each month? Did you save the company $100,000 by developing a new procedure? Did you generate new product publicity in trade press? Did you control expenses or make work easier?

What is the Difference Between a Curriculum Vitae and a Resume? Often one hears the term Curriculum Vitae being used almost exactly as one would use the term Resume. Though structurally similar, the curriculum vitae has some important differences from a resume. Here is a quick checklist: Curriculum Vitae A curriculum vitae is usually long, often several pages. Resume A resume is short and in many cases, a one pager is recommended. Curriculum Vitae A curriculum vitae is more descriptive. Resume A resume skims the surface. Curriculum Vitae A curriculum vitae is often used when applying for academic or research positions. Resume A resume is used in a wide variety of situations - job applications, college admissions... Curriculum Vitae Academic, curricular, and scholarly areas are in considerable focus. Hence you will find details of awards, publications, projects, honors, memberships,  affiliations ... Resume These academic areas are mentioned, but the resume paints a much broader picture Some of the definitions of a curriculum vitae are: (From jobstar.org) A curriculum vitae is - A detailed, lengthy and structured listing of education, publications, projects, awards and work history. A curriculum vitae for a mid-career candidate may be as long as twenty pages. (From the UC Davis Career Resource Manual) A curriculum vitae is the name of the resume used by individuals seeking a teaching and/or research position in a postsecondary institution or high-level research industry.

Memo Memos have one purpose in life: as the authors of Business Writing Strategies and Samples put it, "Memos solve problems." Memos solve problems either by informing the reader about new information, like policy changes, price increases, etc., or by persuading the reader to take an action, such as attend a meeting, use less paper, or change a current production procedure. Regardless of the specific goal, memos are most effective when they connect the purpose of the writer with the interests and needs of the reader. What Is a Memo? When you think of a memo, what do you think of? Is it a little piece of paper with a cute letterhead that says something like: "From the desk of ..." or "Don't forget ..." or "Reminders ..." The message itself may be very simple--something like: "Buy more paper clips" or "Meet with President at 2:30" or "Mom, we're out of fudge pops." While these memos are informative or persuasive, and may serve their simple purposes, more complex memos are often needed in an office setting. But don't let that worry you. Even though business memos may be more formal and complicated, the intention in writing one is still the same. You want to achieve your purpose with your reader effectively. This handout will show you how. Basic Memo Plans 

Standard office memos can be approached in different ways to fit your purpose. Here are three basic plans: The direct plan, which is the most common, starts out by stating the most important points first and then moves to supporting details. This plan is useful for routine information and for relaying news. The indirect plan makes an appeal or spews out evidence first and arrives at a conclusion based on these facts. This plan is best used when you need to arouse your reader's interest before describing some action that you want taken. A combination approach can be used for the balanced plan. This plan is particularly useful when relaying bad news, as it combines information and persuasion. Parts of a Memo Standard memos are divided into segments to organize the information and to help achieve the writer's purpose. Heading Segment The heading segment follows this general format: TO: (readers' names and job titles) FROM: (your name and job title) DATE: (complete and current date) SUBJECT: (what the memo is about, highlighted in some way) Troubleshooting hints:

Make sure you address the reader by his or her correct name and job title. You might call the company president "Maxi" on the golf course or in an informal note, but "Rita Maxwell, President" would be more appropriate for a formal memo. Be specific and concise in your subject line. For example, "Rats" as a subject line could mean anything from a production problem to a personal frustration. Instead use something like, "Curtailing Rat Extremity Parts in our Product." Opening Segment The purpose of a memo is usually found in the opening paragraphs and is presented in three parts: the context and problem, the specific assignment or task, and the purpose of the memo. The context is the event, circumstance, or background of the problem you are solving. You may use a paragraph to establish the background and state the problem or simply the opening of a sentence, such as, "In our effort to reduce rat parts in our product...." Include only what your reader needs, but be sure it is clear. In the task statement you should describe what you are doing to help solve the problem. If the action was requested, your task may be indicated by a sentence opening like, "You asked that I look at...." If you want to explain your intentions, you might say, "To determine the best method of controlling the percentage of rat extremities, I will...." Finally, the purpose statement of a memo gives your reason for writing it and forecasts what is in the rest of the memo. This is not the time to be shy. You want to come right out and tell your reader the kind of information that's in store. For example, you might say: "This memo presents a description of the current situation, some proposed alternatives, and my recommendations." If you plan to use headings for your memo segments, you can refer to your major headings in this forecast statement to provide a better guide for your reader.

Business English Lecture 6 Job Interviews Tell me about yourself... (Your answer should contain much more about your job skills than your personal life.) Talk about the growth of your career, what you learned from previous employment or even things like how your volunteer worked help you develop your organizational, time management and leadership skills. What are your strengths? (If you really enjoy new challenges and tackle them in an organized manner, this would be a useful strength in almost any situation.) You can talk about your ability to find unique solutions to problems. Be prepared with some concrete examples, since that may be the follow-up question. What are your weaknesses? (A "good" weakness might be that you have trouble leaving the office behind when you go home in the evenings.) This is a very difficult question that is not asked often, but it's one you should prepare for anyway. If you talk about your temper, your tendency to gossip or the fact that you're lazy, you may as well pack up and go home right then. If you mention a weakness such as your lack of patience with people who don't do their share of the work, you should also mention that you keep this impatience to yourself and try very hard not to express it toward others. Do you have any questions about our company? (If you have paid attention during the interview and if you have done your homework, this would be a good time to ask for more details about some aspect of the company's organizational structure or products. It would not be a good time to ask about your first raise. You could also ask questions about the community, their training program or details about the work environment.) Where do you expect your career to be in 10 years? (Be careful here. You do not want to give the impression that you're simply using this company as a stepping stone to another career. Think of a related managerial position within the company that would interest you.) There is a story about a young accountant who was asked this question by a CPA firm during an interview. The young accountant replied that he saw himself as the comptroller of a large corporation. In other words, "I'm just using your firm to teach me and then after you spend your resources training me, I will leave to go work for someone else." Needless to say, he was not offered a position with the CPA firm. They know that 75% of the people they hire will leave within 10 years, but they do not want to hire someone who comes in with that plan. What skills do you have that would benefit our company? (If your skills are not exactly those that the company may have requested, you can point out the skills you have that would be valuable to any company. Examples of these skills are: your ability to plan and execute long-term projects, your ability to organize information into usable data, your ability to research complicated issues, or your ability to work well with a team.) If your skills are not perfect for this particular company, you can mention how quickly you were able to adapt and learn in other situations. Again, be prepared with specific examples in case you are asked to elaborate. Why did you leave your last job? (This is not an opening to speak badly of your former employer. There is almost always a way of wording the explanation so that you do not sound like a "problem employee" and your former employer does not sound like an undesirable company.) As unfair as it may seem, there is almost no time when you should say something bad about your former employer. You can talk about the lack of potential for upward mobility, the fact that your job responsibilities changed to the point that it no longer fit into your career plan, your need to move to be closer to your aging parents, the need to reduce travel time, your need for a more challenging job, or anything else that does not get into personalities or other conflicts.

If you were fired for cause, you may want to be up front about it, explain the circumstances and accept responsibility for your actions. Practice your answers to this question with someone who has interview experience. However, don't lie. If you can't say anything positive about your former employer, don't say anything. It could come back to haunt you. 25 IMPORTANT INTERVIEW TIPS: Arrive a little early. If you arrive about fifteen minutes before the scheduled interview time, you will have time to collect your thoughts, wipe the perspiration from your hands, and scan the lobby for current company information. You will also show your interviewer that you value his or her time. Do your homework. Know the interviewer's name and how to pronounce it (including proper title: Mr., Mrs., Dr., etc.). Know the company's major products or services, the organization of the company (divisions, parent company, etc.), current business news about the company and the company's major customers and competitors. You can learn most or all of this information from the company's website, annual report or company literature. Bring a Spare Copy of Your Resume in a Briefcase or Folder. This demonstrates that you are prepared. It also gives the interviewer something to take notes on. Expect to Spend Some Time Developing Rapport. Personal chemistry is a main ingredient in the hiring process. Try to relax and become comfortable with the interviewer. Watch Your Non-Verbal Communication. Maintain an open body posture and appropriate eye contact. Seat yourself at a reasonable distance from the other person. Smile. Don't Be Embarrassed by Nervousness. Interviewers are human, and they often become nervous, too. In fact, nervousness is a good sign - it shows that you are taking the interview seriously. Avoid nervous mannerisms such as tapping your fingers, feet, playing with pens, etc. Body language is powerful! Good eye contact, a warm, natural smile and a firm handshake can help you overcome nervousness, develop a personal rapport and present a confident image. Don't Play Comedian or Try to Entertain the Interviewer. It is important to be personable, but do not overdo it. Don't Exaggerate or Lie. You might be tempted to embellish your achievements in the interview, but it will come back to haunt you on the job! Follow the Interviewer's Lead. Don't try to take over the interview. Stick to the main subject at hand, but do not dwell too long on one point. It is better to deal with many questions rather than just one or two in-depth questions, unless that's where the interviewer leads you. Be Prepared For Personal Questions, Even Some Inappropriate Ones. Anticipate how you will handle personal questions without blowing your cool. Some interviewers may not be aware of what they can and cannot legally ask you. Be sure you understand the question. It is okay to ask for clarification. Emphasize the Positive. Be frank and honest, but never apologize for lack of experience or weaknesses. You can be self-confident without being overconfident or flippant. If you are new to the job market, your lack of experience has one very positive feature: you do not have to "unlearn" bad habits or different practices learned from previous employers. Many employers like the idea that you can be taught their individual company procedures without needing to get rid of other training first. Wait for an Offer to Bring Up Salary. Let the interviewer bring up this subject. Often salary and benefits are not discussed at all on the first interview. Even though

everyone knows that salary is important, you do not want to give the impression that it is the only consideration. If it is, you can be easily lured away be a competitor offering a slightly higher salary. The interviewer needs to see that you are interested in the other aspects of the job like the potential for growth, learning or the challenge of the position. Don't be Afraid to Think Before You Speak. Use silence and intentional pause to your advantage. Time is occasionally needed to think and to reflect. The interviewer will respect you for taking questions seriously enough to give it a moment or two of consideration before answering. Emphasize What You Can Do For The Organization. This means emphasizing your transferable skills. However, be careful not to reveal trade secrets from a previous employer. Employers are concerned most with what you can do for them. Focus on your ability to tackle new situations, your communication skills, interpersonal abilities, analytical thinking talents, and other skills developed while in college or in previous positions. Don't give "Prepared Answers". Most employers know a these stock answers when they hear them. This is a good reason to use interview question / answer guide as just that - guides. If your answers are not personalized to your situation, they will sound forced and unnatural. You might be surprised to learn how often interviewers hear the phrase, "I really like working with people." The phrase is used so often that it has lost it's meaning! NEVER Speak Badly about a Former Employer. If there were problems with previous experiences, try to put your answers in the positive rather than the negative. If you slight a former employer, the interviewer may assume that you will someday do the same to him or her.  Employers are interested in candidates Watch Your Grammar and Your Manners. who can express themselves properly. Even if you have to slow down to correct yourself -- do it! Use slang expressions very sparingly. If your knowledge of rules of etiquette are rusty, take a "refresher course" from a knowledgeable friend. Be Prepared to Ask Questions. Almost all interviewers will ask if you have any questions. You should have some ready and should have at least one that is related to the conversation you have just completed. This demonstrates that you are both prepared and interested. Your questions should be related to details about the company and should be based on the information you learned from the homework you have done (see Tip #2). You should not ask questions like "How long to I have to wait before I can take a vacation?" Save those what's-in-it-for-me questions for later. Use Telephone Interviews. If you are applying for jobs in places in other states, you can suggest a short telephone interview. Even a preliminary telephone interview can help you assess whether or not it would be worth your time and expense to travel for a personal interview. Don't Expect an Immediate Job Offer. Offers usually follow the interview, a few weeks later. If you are offered the position on the spot, it is appropriate for you to ask for one or two days to think about the offer before responding. Be Careful With the Closing. Do not linger. End quickly and courteously. Thank your interviewer for the interview. Smile. Be Yourself! You do not want to get hired on the basis of something you are not. You want to be hired for who you are! • Brainhunting companies • Psychological tests • Decisionmaking (forgot to buy flowers)

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Actors hired Language interview Computer literacy

Writing job application letters The job application letter's sole purpose is to get the recipient to read your CV. It should be clear, concise and straight to the point. Here you are simply telling the employer that you are worth having a look at. The application letter should be brief, no more than one page in length. It should be easy to read and flow through. It should include only the absolute necessary information. Like most other things, there is a formula that works extremely well for preparing job application letters. Following we discuss each paragraph and give you some guidelines. Addressing job application letters: The first paragraph should simply state why you are writing to them. If it is an advertised position, mention the position title and where it was advertised. If you are "cold calling" a company then you should specify that you are applying for any current or future employment opportunities. An easy way to start this paragraph is with the following statement: " Please find enclosed my CV, which I am forwarding to you as an application for the position of......." The main body of job application letters: The main body of the letter should be two to three paragraphs at the most. Here is where you tell them what you have to offer and why they should read your CV. This is a good time to read the job advertisement again. In one paragraph (two at the most) you need to summaries your experience and skills, at the same time, you need to respond to the position requirements asper the advertisement. Analyze your career and summaries it in a few sentences, highlight what you specialise in, or how many years in the industry you might have, or even the level that you have reached. This paragraph should direct the reader to your CV and should sell you on some unique points that you might have. A good way to start this paragraph is with a statement like this: "You will see from my enclosed CV...." then go ahead and tell them something about your career which will immediately get their interest. The next part of the body of the letter should be a brief description of your personal skills. Again read the advertisement and respond to their needs. If they are asking for someone with good co-ordination skills, then ensure you mention something to that effect. If it is communication or perhaps leadership skills they value, then tell them that you have these. Use adjectives like "demonstrated ability", "well developed", "strong". Job Application Letters Closing Paragraph: The closing paragraph should ask for some action from the recipient. This is where you ask for an interview. It should also state where and how they can reach you, and it should thank the recipient for giving you the opportunity to apply. You can include things like "should you require further information....." .

Business English Lecture 7 Marketing Basics Do you know your business marketing strategy? Are you sure who your customers are, where they are and what exactly they need? What prices can they afford to pay you? How can you reach your customers best? How can you promote your business better? Do you know how to set your prices, taking into account your own costs, profit and return on capital? Good marketing is the cornerstone of any profitable business. The principles of the marketing mix with the four Ps and mark-up are explained in an easy-to-understand approach, even if you have had no formal business education.

Understand Your Customer Marketing is everything you do to find out who your customers are and what they need and want. It is how to satisfy them and make a profit by: • providing the products or services they need • setting prices that they are willing to pay • getting your products or services to them • informing and attracting them to buy your products or services. Your customers are the people or other businesses who want your products or services and are willing to pay for them. Do market research to learn about your customers and competitors:  1. Find out about your customers and competitors. 2. Find out if there are enough customers. Get information about: • which different kinds of customers want your products or services • what products they want • what prices they are willing to pay • where they are and where they usually buy • how often and how much they buy • who your competitors are and what they offer. The customer is the most important person for your business. Satisfied customers will come back and buy more from your business. More satisfied customers mean larger sales and larger profits.

Satisfy Your Customer You have done market research to learn about your customers and competitors. Now, use the information from your market research to satisfy your customers. To satisfy your customers, improve your sales and make a profit, you need to find out: • what product or service your customers want • what price your customers are willing to pay • at what place your business should be so you can reach your customers

what promotion you can use to inform your customers and attract them to buy your products or services. These are called the four Ps of marketing. They all start with a P: Product, Place, Price and Promotion. So they are easy to remember. The four Ps of marketing are like stepping stones between your business and your customers. What makes you satisfied with a product? Shoes, electronics, budget products •

PRODUCT: What products or services to provide The first P of marketing is Product. Product means having the products or services your customers want. Customers buy goods and services to satisfy different needs and wants. A successful business finds out what customers need and then provides the products or services to satisfy those needs. When the needs change, use market research to change your products to satisfy your customers. Current trend in electronics: new cheap models looking good but having nothing Provide what your customers want. Do not just sell the same products as other businesses. Try to improve on the products you already make and sell. Your products will not always sell well. Keep your eyes and ears open for ideas on new products or services. Use market research to find out which ideas can be made into products or services your market wants and is willing to pay for. Make sure that your products or services give your business a high enough profit.

PRICE: What price to charge



The second P of marketing is Price. In marketing, price means: • setting a price that your customers are prepared to pay • making sure the price is attractive and still gives you a high enough profit at the end of the month. In general, your prices must be: • low enough to attract customers to buy, and high enough to give your business a profit at the end of the month. Before you set a price, you need to: 1. Know how much customers are prepared to pay. 2. Know your competitors’ prices. 3. Design a pricing strategy. 4. Know how to make your prices more attractive to your customers, for example by using special offers and discounts. To make a profit at the end of the month, your selling price must be your total cost for the product or service plus your mark-up for unforeseen expenses, business growth and profit sharing.

PLACE: How to reach your customers The third P of marketing is Place. Place means: location - where your business is located, and distribution - how to get your products or services to your customers.

Most retailers and service operators need to be where their customers are. Manufacturers need to have a good way of distributing their products to their customers. If your business is not where your customers are, you must find ways to distribute your products to where it is easy for customers to buy. Direct distribution is most useful for your business if you make fairly expensive, specialized products and have few customers who may want a service with the product you make. Retail distribution and wholesale distribution are most useful if you make a large quantity of standard, low priced goods and have many customers in a large area. Before you decide if you want to change your distribution, think about your products, your customers, your business and your sales, costs and profit.

PROMOTION: How to attract customers to buy The fourth P of marketing is promotion. Promotion means informing and attracting the market to buy your products or services. Do promotion, sell more and increase your profit by: • advertising • sales promotion • publicity • improving your skills as a salesperson. Use advertising to make customers more interested in buying your products or services. Some useful ways to do advertising are signs, boards, posters, handouts, business cards, price lists, special letters, photos, and newspapers. Use sales promotion to make customers buy  more when they have come to your business: • have good displays • let customers try new products • have competitions • give demonstrations • sell products that go together. Publicity is free promotion. For example, a good story about your business in a newspaper or on the radio gives you good publicity. Word of mouth means that people tell others what they think about you, your business and what you sell. Word of mouth is probably the most common way new customers find out about your business. Improve your skills as a salesperson. Sales skills can make the difference between success and failure. To be a successful salesperson and increase your sales you need to: • know your customers and their needs • know how to treat your customers • know your products and how to sell them • know how and when to sell on credit. You will often find that many people confuse marketing with advertising or vice versa. While both components are important they are very different. Knowing the difference and doing your market research can put your company on the path to substantial growth. Let's start off by reviewing the formal definitions of each and then I'll go into the explanation of how marketing and advertising differ from one another:

Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers. Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products. After reading both of the definitions it is easy to understand how the difference can be confusing to the point that people think of them as one-in-the same, so lets break it down a bit. Advertising is a single component of the marketing process. It's the part that involves getting the word out concerning your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and of course the Internet. Advertising is the largest expense of most marketing plans, with public relations following in a close second and market research not falling far behind. The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, sales strategy, and community involvement. Advertising only equals one piece of the pie in the strategy. All of these elements must not only work independently but they also must work together towards the bigger goal. Marketing is a process that takes time and can involve hours of research for a marketing plan to be effective. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer.

Business English Lecture 8 Traveling Presentations – always have an overhead or laptop beamer at hand, even though a presentation is not arranged. Visits – tributary function, no big deal, small talk, dirty jokes, little material discussion, giveaways Crucial decisions – the people who you deal with never make crucial decisions, it is their bosses who do. Visits around the town – not necessary, never arranged, by yourself Currency exchange – pocket money, small cash for parking Traveling arrangements – booking through the internet, taxi (Britain, Vienna airport), airport lift, traveling by car is typical, companies not willing to pay for airplanes, checking in and checking out, accommodation has to be booked Per diem allowance - paid by your employer, pretty good Accommodation – typically rural, not a real hotel, that is expensive Dress – casual abroad even with top managers Eating habits – eat modestly, fat meals, eating bacon abroad Sports hangout – get ready for curling!!! Language – a huge drawback, they really esteem those who speak the language of the country. Interpreters are necessary Medical insurance – should have one National holidays – Banking holiday Business Trip Reports – a typical follow-up Business cards – Slovaks never have them on a business trip Mobile accessories – no need to drag your  laptop, problems with current converters Blulitez